Interest gain for a discrete insurance contract

Interest gain for a discrete insurance contract

Usage

GI_disc(Vt, Vt1, P, i_actual, q_assumed, B = 1)

Arguments

Vt

Reserve at duration t.

Vt1

Reserve at duration t+1.

P

Net premium for the year.

i_actual

Actual annual effective interest rate.

q_assumed

Assumed mortality rate for the year.

B

Benefit amount. Defaults to 1.

Value

Numeric vector.

Examples

GI_disc(Vt = 0.1, Vt1 = 0.11, P = 0.02, i_actual = 0.05, q_assumed = 0.01)
#> [1] 0.0071